FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 21 October 2022

FUNDAMENTAL AND TECHNICAL ANALYSIS REPORT – 21 October 2022

Technical Analysis

U.K. Retail Sales Fell Again in September

Asian stock markets fell on Friday. The Shanghai Composite is down 0.17% at 3,030.30. Overall, the Singapore MSCI is down 1.21% at 264.30. Over in Hong Kong, the Hang Seng Index is down 0.42% at 16,181.00. In Japan, the Nikkei 225 is down 0.37% at 26,900.00, while the Topix index is down 0.40% at 1885.50. South Korea’s Kospi is down 0.22% at 2,213.12. Australia S&P/ASX 200 down 0.80% at 6676.80.

Top News of the Day:

U.K. retail sales fell for the second month in a row in September as consumers revolted at runaway inflation, pushing the country closer to recession.

Sales fell 1.4% in real terms – that is, adjusted for inflation – as inflation ran at a rate of over 10%. August’s decline was also revised down to 1.7% from an initial reading of 1.6%.

Market Summary as per 20/10/2022:

European equities Thursday closing. The DAX futures contract in Germany traded up 0.20% at 12,767.41, CAC 40 futures up 0.76% at 6086.91 and the UK 100 futures contract in the U.K. up 0.27% at 6943.92.

In the U.S. on Wall Street, the Dow Jones Industrial Average closed down 0.30% at 30333.60. The S&P 500 down 0.80% at 3665.77 and the Nasdaq 100 down 0.51% at 11046.71, NYSE closes down 0.77% at 13840.47.

Top Market News Today:

In the Forex market, GBPUSD down 0.38% at 1.1188. The USDJPY up 0.18% at 150.400. The USDCHF up 0.33% at 1.0060. EURUSD down 0.14% at 0.9768, EUR/GBP up 0.21% at 0.8727. The USD/CNY up 0.44% at 7.2447 at the time of writing.

In the Commodity market U.S. Gold futures down 0.30% at $1,622.16. Elsewhere, Silver futures down 0.54% at $18.532 per ounce, Platinum down 0.06% at $912.43 per ounce, and Palladium down 0.26% at $2051.13.

Crude Oil down on Friday; Brent Crude Oil down 0.19% at $92.37 per barrel while U.S. West Texas Intermediate (CLc1) down 0.53% at $84.33.

In the Cryptocurrency Markets, Bitcoin at 19000.00 down 0.16%, Ethereum up 0.42% at 1288.50, Litecoin at 51.00 up 0.04%, at the time of writing.

Top Market Segment to Watch Out Today:

TESLA: Tesla (NASDAQ:TSLA) Chief Executive Elon Musk said on Friday he thinks a recession will last until the spring of 2024, after earlier saying “a recession of sorts” in China and Europe was weighing on demand for its electric cars.

Economic News:

US: Sales of existing U.S. homes slid for an eighth straight month in September and will likely fall further in the months ahead as the housing market continues to stand out as the economic sector absorbing the hardest hit from the Federal Reserve’s aggressive interest rate hikes.

The broadly weak report from the National Association of Realtors on Thursday stood in contrast with another strong reading of the U.S. job market, with the Labor Department reporting an unexpected drop last week in the number of people seeking unemployment benefits for the first time.

The two reports illustrate the uneven impact seen so far from the swiftest series of Fed rate hikes in at least four decades.

The U.S. central bank has raised its benchmark overnight interest rate from near zero in March to the current range of 3.00% to 3.25%, and that rate is likely to end the year in the mid-4% range, based on Fed officials’ own projections and recent comments.

Euro Zone: Confidence among British consumers remained close to the lowest level on record this month with households facing double-digit inflation, rising interest rates and political chaos, survey showed on Friday.

Market research firm GfK’s consumer confidence index rose to -47 from -49 in September which was its weakest level since the survey was launched in 1974. Economists polled by Reuters had expected a worse reading of -52.

The survey of 2,001 people was conducted between Oct. 3 and Oct. 13, covering the period after Prime Minister Liz Truss agreed to a first of several U-turns on tax policy – reversing her decision to axe the top rate of income tax – but before her resignation on Thursday.

New finance minister Jeremy Hunt has said he will drop most of Truss’s economic programme, cut public spending and has warned of further difficult decisions on tax as he tries to restore Britain’s economic policymaking credibility.

Top Economic Releases Today:

  1. U.K. Retail Sales (MoM) (Sep) today at 02:00 this time estimated -0.5%, previously which was -1.7%.
  2. 30 this time estimated 0.4%, previously which was -3.1%.
  3. U.S. Federal Budget Balance today this time estimated -173.5B, previously which was -222.0B.
  • EURO ZONE EU Leaders Summit today at 06:00.
  • GERMANY Buba Beermann Speaks today at 18:00.

TECHNICAL SUMMARY

GBPUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 1.1182, TAKE PROFIT AT 1.1105 AND STOP LOSS AT 1.1243

EURUSD TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 0.9765, TAKE PROFIT AT 0.9722 AND STOP LOSS AT 0.9783

USDJPY TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 150.429, TAKE PROFIT AT 150.458 AND STOP LOSS AT 150.400

USDCHF TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 1.0047, TAKE PROFIT AT 1.0071 AND STOP LOSS AT 1.0036

CAC 40 TECHNICAL ANALYSIS

TRADE SUGGESTION- BUY AT 6016.80 TAKE PROFIT AT 6120.90 AND STOP LOSS AT 5995.40

WTI CRUDE OIL TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 84.37 TAKE PROFIT AT 84.05 AND STOP LOSS AT 84.66

GOLD TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 1625.00, TAKE PROFIT AT 1620.69 AND STOP AT 1627.70

BITCOIN TECHNICAL ANALYSIS

TRADE SUGGESTION- SELL AT 18990.77 TAKE PROFIT AT 18531.02 AND STOP AT 19286.95

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